Explanation
This legislation authorizes the Director of Public Utilities to execute contract modification No. 17 to the Organic Waste Processing Agreement between the City of Columbus (City) and Kurtz Brothers Central Ohio, LLC (Kurtz).
Contract modification No. 17 will be in effect from December 1, 2022 to and including November 30, 2023, and is the first iteration to not include the Solid Waste Authority of Central Ohio (SWACO), which declined to renew the contract this year. The contract modification funds the following services and provisions:
Fixed Rate Sewerage Sludge Processing Term:
The contract continues a fixed rate fee of $33.50 per wet ton of sewerage sludge processing for the duration of this contract (10 years + 5 year extension). This contract authorizes the transfer to the organic waste recovery and reuse system of up to 25,000 wet tons of sewerage sludge per year at this rate. This contract provides DOSD with an additional beneficial alternative use option for sewerage sludge.
Log Grinding:
The contract adds a provision to fund log grinding services utilizing funds originally intended for hauling incinerator ash as part of a beneficial reuse program at the City’s two wastewater treatment plants. Incinerator ash had been historically stored at the treatment plants in lagoons and land filled at considerable expense to DOSD. This program allowed for up to 5,000 tons of wastewater treatment incinerator ash a year to be removed and adapted for beneficial reuse at a rate of $30.97 per ton, which was less than the land filing cost to the City. However, in 2015, the City ceased incineration of sewerage sludge, and thus incinerator ash generation, prior to the end of the contract.
1. Amount of additional funds: The amount of additional funds needed for this contract is $1,587,500.00. The original contract was established without funding. The total City cost of the original contract and all modifications is $13,075,645....
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